Compare Texas electricity rates

In a deregulated market such as Texas, the utility company and electric providers perform different roles. The utility company is responsible for transmitting and delivering electricity, maintaining electrical infrastructure, and restoring power when there is an outage. While consumers can choose their energy provider, they cannot choose their utility. Your utility is determined based on location.

In regulated states, consumers can only receive their electricity from the local utility company. But with deregulation, 85 percent of Texans can choose their electric provider from all of the available companies. The responsibility of the energy provider is to generate electricity and sell it to consumers. Enter your ZIP code above to explore all of the available Texas electric companies in your area.

Utility service areas

There are five main utility companies operating in the state of Texas. They are:

• AEP Texas Central: This utility serves areas including Corpus Christi, Laredo, and McAllen.
• AEP Texas North: This utility’s service area covers Abilene, San Angelo, and other cities.
• CenterPoint: This utility operates across the Houston metropolitan area.
• Oncor: This service area covers Arlington, Dallas–Fort Worth, Irving, Odessa, and other cities.
• Texas-New Mexico Power: This utility spans across Dallas–Fort Worth, Houston, and Midland.

Electricity companies in Texas

In Texas, there are a variety of electricity companies offering their services. The sheer amount of available providers can make it difficult to find the best energy company for your home or business. Choose Energy’s marketplace only features plans from the most trusted energy providers in Texas. Enter your ZIP code above to find a list of energy rates and plans from energy companies such as TXU Energy, Reliant Energy, 4Change Energy, Express Energy, Gexa Energy, Green Mountain Energy, and many more.

Report an outage to your utility company

If you experience a power outage, contact your utility company. The local utility is in charge of restoring power outages, not your energy provider. Visit our list of Texas utilities to find the contact information for your local utility company.

There are several common types of electric rates and plans that you will find during your search. For a complete rundown of energy lingo, check out our complete energy buying guide. On the Choose Energy marketplace, you can generally expect to find the following options:

Fixed-rate energy plans

With a fixed-rate electricity plan, the rate you pay each month for energy will not change for the duration of your contract. The only variables are energy usage and any government fees or taxes. These plans provide the most stability and predictability for monthly energy bills. Fixed-rate plans protect customers from the highs and lows in the energy market. Typically, fixed-rate plans lock consumers into a contract, which tends to last between 12 and 36 months, depending on the term length.

Variable-rate energy plans

Variable-rate plans are the opposite of fixed-rate options. With these plans, the rate you pay each month will fluctuate based on the market electricity prices. During times of low energy demand, this may mean you pay a lower electricity bill. But when demand goes up, your energy rate will increase, too. Variable-rate plans do not require you to sign a contract, so you have the flexibility to switch to another energy plan at any time.

Indexed rates

Indexed rates are less common than fixed or variable rates. With an indexed rate, the rate you pay is calculated based on a commodity index for energy. Different providers will use various formulas to determine the rate you pay in an indexed plan. Be sure to carefully read the contract before signing up to ensure you fully understand how your rate will be calculated.

No deposit options

When you sign up for an energy plan, you may be required to pay a deposit if you don’t meet a provider’s credit threshold. If paying a deposit is not an option for you or you want to avoid a credit check altogether, Choose Energy can help you find a cheap, no-deposit electricity plan. Several providers on our marketplace offer prepaid energy plans that allow you to bypass paying a deposit and instead pay for your electricity upfront. This way, you only pay for the amount of energy that you use. Enter your ZIP code above and use the filter feature to find no deposit and prepaid options in your area.

Green energy plans

Texas leads the nation in renewable energy. The Lone Star State produces the most wind energy in the country and is one of the top producers of solar power. Because of this, finding a green energy plan in Texas is easy for consumers. Every Texas energy plan includes some percentage of renewable energy in the mix. Some providers specialize in only offering 100 percent green energy plans, including Gexa Energy, Green Mountain Energy, and Chariot Energy. Enter your ZIP code above and filter for green energy to find renewable electricity plans in your area.

Commercial energy plans

Texas businesses also have the power to choose their energy provider. Nearly three million businesses in deregulated areas across the U.S. have taken advantage of affordable electric rates, competitive plans, and renewable energy options.

Choose Energy can build a custom quote tailored to businesses of all sizes. To speak with one of our energy experts about your Texas business energy plan, visit our business energy page and fill out the form at the bottom of the page. Once we have a little bit of information about your energy needs, we’ll compare business energy plans in your area and help you find the best commercial electricity deal available.

Founded in 2008, Choose Energy provides all-inclusive pricing and straightforward, unaffiliated guidance on our marketplace. That’s a major reason why Choose Energy’s reviews on Trustpilot are positive and we have earned a total score of 4.1 out of 5. When you enter your ZIP code above, you can filter for providers, rate types, contract lengths, green energy plans, and more. We’ll help you sort through all of your options to find the best electricity plan for your home or business. Here’s how:

• Enter your ZIP code.  The rates you find on our marketplace are all-inclusive and we provide honest and straightforward reviews of the electricity providers on our site to help you make the best decision for your home or business. 
• Sign up online. Once you decide on a plan, we’ll walk you through the sign up process in a matter of minutes.
• Enjoy your new energy plan. Your new energy provider will take care of the rest without any service interruption for you.

If you are moving to Texas, you can keep your energy plan with your current provider if it offers service at your new address. If you are ready for a new provider or your current provider does not operate in your new location, you can switch to a new provider without paying an early termination fee. It’s a good idea to begin shopping for a new energy plan up to 90 days ahead of time. All you will need to do is select your move-in date when you sign up and your provider will handle the rest.

Most Texas homes have smart meters installed, which means you will not need to schedule a technician visit to begin service. Instead, your new provider will activate your service remotely on the date you select.

Choose Energy works with trusted providers in Texas, including TXU Energy, Direct Energy, and Reliant Energy. Our independent marketplace allows you to compare all-inclusive electricity rates and reliable plans from top energy providers in the market.

To learn more about moving your Texas electricity service, see our resource page for Texas movers.

Changing energy companies is easier than it may seem. Just enter your ZIP code above and Choose Energy will show you available plans in your area. Filter through rates, plans, and providers to find the best choice to fit your energy needs. Once you’ve found the right plan, you can enroll quickly and easily through Choose Energy.

Before you switch, check your Electricity Facts Label (EFL) to see if your contract has an early termination fee. If it does, you may need to pay that fee to end your contract before it expires. However, that fee is waived if you switch within 14 days of your contract ending. You will also not be charged an early termination fee if you end your contract because you are moving, as long as you provide proof that your address is changing.

After you’ve signed up for your new energy plan, your work is done. Choose Energy will communicate with your previous provider about the switch. Your current electric company will then coordinate with your new energy provider to switch over your electric service. Again, most Texas homes have smart meters installed, so your new provider should be able to make the switch without sending a technician to your home.

For further details on finding a new Texas energy plan, visit our guide to switching energy plans.

Why does Choose Energy run a credit check?

The providers we work with generally require us to run a soft credit check before to see if the required credit threshold is met and whether you will need to pay a deposit. Credit checks are a normal part of electricity shopping. We run a soft credit check – the kind that doesn’t affect your score. In addition, we only run it once. We’ll check your score against all of the providers on our marketplace so you can find the best rate and plan to fit your needs. See our deposits guide for more information about the credit check process.

How quickly can I start service?

If you are signing up for a new plan and have a smart meter installed at your home (most Texans do), you could be able to begin service the same day you sign up for your plan. If you are switching, the process could take up to five business days.

What should I do if my power goes out?

Your local utility company is in charge of restoring power in the event of a power outage. If you lose power, you will need to contact your utility, not your provider. To learn more about your utility company, continue scrolling to the utility section or visit our complete list of utility companies.

How much will I be charged for electricity?

Your monthly electric bill is determined by your electricity rate and the amount of energy you consume. When signing up for an energy plan, be sure to pay attention to the rate, the Electricity Facts Label (EFL), and the terms of your contract. It’s also important to know how to read your electricity bill. For a detailed walkthrough, see our guide to reading your bill.

Last Updated: 11/04/2021